G-III Apparel Group, Ltd. (NasdaqGS: GIII) today announced
operating results for the fourth quarter and full-year of fiscal
2011.
For the fiscal year ended January 31, 2011, G-III reported that
net sales increased by 32.8% to $1.06 billion from $800.9 million
last year. Net income per diluted share increased to $2.88 from
$1.83 last year. The prior year’s fourth quarter results included a
one-time tax benefit related to an increase in an acquired net
operating loss of $1.6 million, equal to $0.09 per share. Excluding
the effects of this tax item from last year’s results, net income
per diluted share increased to $2.88 for the fiscal year ended
January 31, 2011 from adjusted net income per share of $1.74 last
year.
For the three-month period ended January 31, 2011, G-III
reported net sales increased by 39.4% to $270.2 million from $193.8
million during the comparable period last year. Net income per
diluted share increased to $0.62 from $0.49 for the comparable
period last year. Excluding the effect of the tax item in the prior
period, net income per diluted share increased to $0.62 for the
three months ended January 31, 2011 from adjusted net income per
diluted share of $0.40 in the comparable period last year.
A reconciliation of adjusted results of operations to GAAP
results for the fiscal year and fourth quarter periods is included
in tables accompanying the condensed financial statements in this
release.
For the fiscal year ended January 31, 2011, EBITDA increased by
66.7% to $102.7 million from $61.6 million in the prior fiscal
year. EBITDA should be evaluated in light of the Company’s
financial results prepared in accordance with GAAP. A
reconciliation of EBITDA to net income in accordance with GAAP is
included in a table accompanying the condensed financial statements
in this release.
Morris Goldfarb, G-III’s Chairman and Chief Executive Officer,
said, “We are very pleased to have delivered a record breaking
performance this year, surpassing the $1 billion sales mark for the
first time in our history. Our businesses are operating well and
achieving growth despite a highly competitive and complex
environment, which we believe to be indicative of our superior
operating capabilities.”
Mr. Goldfarb continued, “Our reputation as a strong partner and
our growing portfolio of exceptional licensed and owned brands has
enabled us to leverage our relationships to create and capitalize
on new opportunities. In the year ahead, we believe we can grow our
existing businesses, supplement them with new category growth in
handbags and luggage, expand our retail business to include the
Vince Camuto outlet concept and continue to seek acquisition
opportunities. We believe that we remain exceptionally well
positioned to deliver value to all of our stakeholders, including
our shareholders, partners, customers and consumers.”
Outlook
Also today, G-III Apparel Group issued guidance for the fiscal
year ending January 31, 2012. For the fiscal year ending January
31, 2012, the Company is forecasting net sales of approximately
$1.2 billion and net income between $64.5 million and $66.5
million, or between $3.15 and $3.25 per diluted share. The Company
is projecting EBITDA for fiscal 2012 to increase approximately 14%
to 18% to approximately $117 million to $121 million.
The Company is forecasting net sales of approximately $195
million for its first fiscal quarter ending April 30, 2012 and net
income between $0.1 million and $1.0 million, or between $0.00 and
$0.05 per diluted share compared to net sales of $154.3 million and
a net loss of $1.4 million, or $0.07 per share, in last year’s
first fiscal quarter.
About G-III Apparel Group, Ltd.
G-III is a leading manufacturer and distributor of outerwear,
dresses, sportswear and women's suits, as well as handbags and
luggage, under licensed brands, our own brands and private label
brands. G-III sells outerwear and dresses under our own Andrew
Marc, Marc New York and Marc Moto brands and has licensed these
brands to select third parties in certain product categories. G-III
has fashion licenses under the Calvin Klein, Sean John, Kenneth
Cole, Cole Haan, Guess?, Jones New York, Jessica Simpson, Nine
West, Ellen Tracy, Tommy Hilfiger, Enyce, Levi's and Dockers brands
and sports licenses with the National Football League, National
Basketball Association, Major League Baseball, National Hockey
League, Touch by Alyssa Milano and more than 100 U.S. colleges and
universities. Our other owned brands include Jessica Howard, Eliza
J, Black Rivet, G-III, Tannery West, G-III Sports by Carl Banks and
Winlit. G-III also operates retail outlet stores under our Wilsons
Leather name and is a party to a joint venture that will operate
retail outlet stores under the Vince Camuto name.
Statements concerning G-III’s business outlook or future
economic performance, anticipated revenues, expenses or other
financial items; product introductions and plans and objectives
related thereto; and statements concerning assumptions made or
expectations as to any future events, conditions, performance or
other matters are “forward-looking statements” as that term is
defined under the Federal Securities laws. Forward-looking
statements are subject to risks, uncertainties and factors which
include, but are not limited to, reliance on licensed product,
reliance on foreign manufacturers, risks of doing business abroad,
the current economic and credit environment, the nature of the
apparel industry, including changing customer demand and tastes,
customer concentration, seasonality, risks of operating a retail
business, customer acceptance of new products, the impact of
competitive products and pricing, dependence on existing
management, possible disruption from acquisitions and general
economic conditions, as well as other risks detailed in G-III’s
filings with the Securities and Exchange Commission. G-III assumes
no obligation to update the information in this release.
G-III APPAREL GROUP, LTD. AND
SUBSIDIARIES(NASDAQ:GIII)CONSOLIDATED STATEMENTS OF
OPERATIONS(In thousands, except per share
amounts)(Unaudited)
Three Months Ended
Twelve Months Ended
1/31/11
1/31/10 1/31/11
1/31/10 Net sales $ 270,164 $ 193,835 $
1,063,404 $ 800,864 Cost of sales
182,857
124,624 712,359
533,996 Gross profit 87,307 69,211 351,045 266,868
Selling, general and administrative expenses
64,714
54,464
248,380
205,281
Depreciation and amortization
1,667
1,290 5,733
5,380 Operating profit 20,926 13,457 96,932 56,207
Interest and financing charges, net
1,325
1,106 4,027
4,705 Income before income taxes 19,601 12,351 92,905
51,502 Income tax expense
7,268
3,341 36,223
19,784 Net income
$ 12,333
$ 9,010 $
56,682 $ 31,718 Net income
per common share: Basic
$ 0.63
$ 0.51 $ 2.96
$ 1.87 Diluted
$
0.62 $ 0.49 $
2.88 $ 1.83 Weighted
average shares outstanding: Basic 19,437 17,707 19,175 16,990
Diluted 19,959 18,250 19,705 17,358
Selected Balance Sheet Data (in
thousands):
At Jan.
31,2011
At Jan.
31,2010
Cash
$
10,045
$
46,813
Working Capital 239,494 174,082 Inventory 204,995 119,877 Total
Assets 456,403 332,015 Total Stockholders’ Equity 303,494 232,210
G-III APPAREL GROUP, LTD. AND
SUBSIDIARIESRECONCILIATION OF EBITDA TO ACTUAL AND
FORECASTED NET INCOME(In thousands)(Unaudited)
ForecastedTwelve Months
EndingJanuary 31, 2012
ActualTwelve MonthsEndedJanuary 31,
2011
ActualTwelve MonthsEndedJanuary 31,
2010
EBITDA, as defined $
117,000 - 121,000
$
102,665
$
61,587
Depreciation and amortization 8,400 5,733 5,380 Interest and
financing charges, net 4,300 4,027 4,705 Income tax expense
39,800 - 41,800 36,223
19,784 Net income
$
64,500 - 66,500 $
56,682 $ 31,718
EBITDA is a “non-GAAP financial measure” which represents
earnings before depreciation and amortization, interest and
financing charges, net, and income tax expense. EBITDA is being
presented as a supplemental disclosure because management believes
that it is a common measure of operating performance in the apparel
industry. EBITDA should not be construed as an alternative to net
income as an indicator of the Company’s operating performance, or
as an alternative to cash flows from operating activities as a
measure of the Company’s liquidity, as determined in accordance
with generally accepted accounting principles.
RECONCILIATION OF ADJUSTED NET INCOME
PER SHARE TO ACTUAL NET INCOME PER SHARE(Unaudited)
Three
MonthsEndedJanuary 31,2011
Three
MonthsEndedJanuary 31,2010
Twelve
MonthsEndedJanuary 31,2011
Twelve
MonthsEndedJanuary 31,2010
Adjusted net income per share $ 0.62 $ 0.40 $ 2.88 $ 1.74 Increased
acquired net operating loss - 0.09 - 0.09 Net
income per share $ 0.62 $ 0.49 $ 2.88 $ 1.83
RECONCILIATION OF ADJUSTED NET INCOME
TO ACTUAL NET INCOME(In thousands)(Unaudited)
Three
MonthsEndedJanuary 31,2011
Three
MonthsEndedJanuary 31,2010
Twelve
MonthsEndedJanuary 31,2011
Twelve
MonthsEndedJanuary 31,2010
Adjusted net income $ 12,333 $ 7,452 $ 56,682 $ 30,160 Increased
acquired net operating loss - 1,558 - 1,558
Net income $ 12,333 $ 9,010 $ 56,682 $ 31,718
In addition to providing financial results in accordance with
GAAP, this press release provides non-GAAP adjusted results that
exclude a non-recurring item and are therefore not calculated in
accordance with GAAP. Management believes that this non-GAAP
financial measure provides useful supplemental information to both
management and investors by excluding the increase in an acquired
net operating loss. The Company believes that this item is not
indicative of the Company’s core operating results. The Company
believes that this non-GAAP information enhances management's and
investors’ ability to evaluate the Company's results as well as to
compare it with historical results. This non-GAAP financial
information should be considered in addition to, and not as a
substitute for or as being superior to, net income or other
measures of financial performance prepared in accordance with GAAP.
A reconciliation of this non-GAAP information to the Company’s
results in accordance with GAAP is included in the above
tables.
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